Business / Companies
Govt assessing Zupco audit
13 Feb 2016 at 08:22hrs | Views
Deputy Minister of Local, Government, Public Works and national Housing Peter Chingosho has said the government is currently assessing the 2013 audited accounts to establish the actual trends that affected the Zimbabwe United Passengers Company.
This was after the MP Phelela Masuku who asked him to explain the viability of Zimbabwe United Passenger Company (ZUPCO) and also state whether the Ministry is considering the privatisation of the entity.
He asked him to further explain the benefits accruing to the nation from ZUPCO?
Chingosho said the Ministry is currently evaluating the viability of ZUPCO through the analysis of the recently submitted 2013 audited accounts to establish the actual trends.
"However, the fact that Government has not injected capital into the company for the past 15 years and that ZUPCO has survived the current challenging economic environment to date tells a story about the company's viability status. In terms of the original mandate ZUPCO has decided to operate rural, inter-city and regional routes due to stiff competition in urban areas," he said.
"However, the ZIM ASSET strategy to introduce a mass bus transit system has seen the company repositioning itself for urban operations. The company is now being encouraged to rebuild its fleet to ensure the leading role in the urban sector where it will continue to operate on commercial lines but as a state enterprise 100% owned by Government."
The deputy minister said on the benefits accruing to the nation, the company is servicing rural and inter-city routes where on most rural routes, the company is the sole supplier, which means ZUPCO is filling a gap where the communities would otherwise be deprived of public transport.
MP Fani Munengami said ZUPCO recently acquired 50 buses and these were impounded by ZIMRA because they had not paid tax.
"What are you doing as a Ministry to ensure that ZUPCO is able to get back the buses that were impounded by ZIMRA?" he said.
Chingosho said ZUPCO is a parastatal which should be able to stand on its own.
"At the moment of the 50 buses ZIMRA requires $50 000 for each bus to be released. So far they have paid for 17 buses that are already on the road and the rest have not been paid for. So, now ZUPCO has submitted a request to the Ministry for assistance but at the moment the Ministry is also facing financial constraints and cannot assist ZUPCO. ZUPCO is still trying to source for required amounts so that the buses can be released," said Chingosho.
This was after the MP Phelela Masuku who asked him to explain the viability of Zimbabwe United Passenger Company (ZUPCO) and also state whether the Ministry is considering the privatisation of the entity.
He asked him to further explain the benefits accruing to the nation from ZUPCO?
Chingosho said the Ministry is currently evaluating the viability of ZUPCO through the analysis of the recently submitted 2013 audited accounts to establish the actual trends.
"However, the fact that Government has not injected capital into the company for the past 15 years and that ZUPCO has survived the current challenging economic environment to date tells a story about the company's viability status. In terms of the original mandate ZUPCO has decided to operate rural, inter-city and regional routes due to stiff competition in urban areas," he said.
"However, the ZIM ASSET strategy to introduce a mass bus transit system has seen the company repositioning itself for urban operations. The company is now being encouraged to rebuild its fleet to ensure the leading role in the urban sector where it will continue to operate on commercial lines but as a state enterprise 100% owned by Government."
The deputy minister said on the benefits accruing to the nation, the company is servicing rural and inter-city routes where on most rural routes, the company is the sole supplier, which means ZUPCO is filling a gap where the communities would otherwise be deprived of public transport.
MP Fani Munengami said ZUPCO recently acquired 50 buses and these were impounded by ZIMRA because they had not paid tax.
"What are you doing as a Ministry to ensure that ZUPCO is able to get back the buses that were impounded by ZIMRA?" he said.
Chingosho said ZUPCO is a parastatal which should be able to stand on its own.
"At the moment of the 50 buses ZIMRA requires $50 000 for each bus to be released. So far they have paid for 17 buses that are already on the road and the rest have not been paid for. So, now ZUPCO has submitted a request to the Ministry for assistance but at the moment the Ministry is also facing financial constraints and cannot assist ZUPCO. ZUPCO is still trying to source for required amounts so that the buses can be released," said Chingosho.
Source - Byo24News
